Indiana (State or other Jurisdiction of Incorporation) | 1-4949 (Commission File Number) | 35-0257090 (I.R.S. Employer Identification No.) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | The following exhibit is furnished pursuant to Item 2.02 herewith: |
CUMMINS INC. |
/s/ CHRISTOPHER C. CLULOW |
Christopher C. Clulow Vice President - Corporate Controller (Principal Accounting Officer) |
Three months ended | ||||||||
In millions, except per share amounts | December 31, 2017 | December 31, 2016 | ||||||
NET SALES | $ | 5,476 | $ | 4,503 | ||||
Cost of sales | 4,102 | 3,383 | ||||||
GROSS MARGIN | 1,374 | 1,120 | ||||||
OPERATING EXPENSES AND INCOME | ||||||||
Selling, general and administrative expenses | 633 | 519 | ||||||
Research, development and engineering expenses | 207 | 158 | ||||||
Equity, royalty and interest income from investees | 56 | 67 | ||||||
Loss contingency | 5 | — | ||||||
Other operating income (expense), net | 10 | (3 | ) | |||||
OPERATING INCOME | 595 | 507 | ||||||
Interest income | 7 | 5 | ||||||
Interest expense | 24 | 18 | ||||||
Other income, net | 18 | 14 | ||||||
INCOME BEFORE INCOME TAXES | 596 | 508 | ||||||
Income tax expense | 905 | 112 | ||||||
CONSOLIDATED NET (LOSS) INCOME | (309 | ) | 396 | |||||
Less: Net (loss) income attributable to noncontrolling interests | (35 | ) | 18 | |||||
NET (LOSS) INCOME ATTRIBUTABLE TO CUMMINS INC. | $ | (274 | ) | $ | 378 | |||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. | ||||||||
Basic | $ | (1.66 | ) | $ | 2.26 | |||
Diluted | $ | (1.65 | ) | $ | 2.25 | |||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
Basic | 165.4 | 167.6 | ||||||
Diluted | 166.2 | 168.1 | ||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 1.08 | $ | 1.025 | ||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. |
Years ended December 31, | ||||||||
In millions, except per share amounts | 2017 | 2016 | ||||||
NET SALES | $ | 20,428 | $ | 17,509 | ||||
Cost of sales | 15,338 | 13,057 | ||||||
GROSS MARGIN | 5,090 | 4,452 | ||||||
OPERATING EXPENSES AND INCOME | ||||||||
Selling, general and administrative expenses | 2,390 | 2,046 | ||||||
Research, development and engineering expenses | 752 | 636 | ||||||
Equity, royalty and interest income from investees | 357 | 301 | ||||||
Loss contingency | 5 | 138 | ||||||
Other operating income (expense), net | 65 | (5 | ) | |||||
OPERATING INCOME | 2,365 | 1,928 | ||||||
Interest income | 18 | 23 | ||||||
Interest expense | 81 | 69 | ||||||
Other income, net | 63 | 48 | ||||||
INCOME BEFORE INCOME TAXES | 2,365 | 1,930 | ||||||
Income tax expense | 1,371 | 474 | ||||||
CONSOLIDATED NET INCOME | 994 | 1,456 | ||||||
Less: Net (loss) income attributable to noncontrolling interests | (5 | ) | 62 | |||||
NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $ | 999 | $ | 1,394 | ||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. | ||||||||
Basic | $ | 5.99 | $ | 8.25 | ||||
Diluted | $ | 5.97 | $ | 8.23 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
Basic | 166.6 | 169.0 | ||||||
Diluted | 167.3 | 169.3 | ||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 4.21 | $ | 4.00 | ||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. |
In millions, except par value | December 31, 2017 | December 31, 2016 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,369 | $ | 1,120 | ||||
Marketable securities | 198 | 260 | ||||||
Total cash, cash equivalents and marketable securities | 1,567 | 1,380 | ||||||
Accounts and notes receivable, net | 3,618 | 3,025 | ||||||
Inventories | 3,166 | 2,675 | ||||||
Prepaid expenses and other current assets | 577 | 627 | ||||||
Total current assets | 8,928 | 7,707 | ||||||
Long-term assets | ||||||||
Property, plant and equipment, net | 3,927 | 3,800 | ||||||
Investments and advances related to equity method investees | 1,156 | 946 | ||||||
Goodwill | 1,082 | 480 | ||||||
Other intangible assets, net | 973 | 332 | ||||||
Pension assets | 1,043 | 731 | ||||||
Other assets | 966 | 1,015 | ||||||
Total assets | $ | 18,075 | $ | 15,011 | ||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Accounts payable (principally trade) | $ | 2,579 | $ | 1,854 | ||||
Loans payable | 57 | 41 | ||||||
Commercial paper | 298 | 212 | ||||||
Accrued compensation, benefits and retirement costs | 811 | 412 | ||||||
Current portion of accrued product warranty | 454 | 333 | ||||||
Current portion of deferred revenue | 500 | 468 | ||||||
Other accrued expenses | 915 | 970 | ||||||
Current maturities of long-term debt | 63 | 35 | ||||||
Total current liabilities | 5,677 | 4,325 | ||||||
Long-term liabilities | ||||||||
Long-term debt | 1,588 | 1,568 | ||||||
Postretirement benefits other than pensions | 289 | 329 | ||||||
Pensions | 330 | 326 | ||||||
Other liabilities and deferred revenue | 2,027 | 1,289 | ||||||
Total liabilities | $ | 9,911 | $ | 7,837 | ||||
EQUITY | ||||||||
Cummins Inc. shareholders’ equity | ||||||||
Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued | $ | 2,210 | $ | 2,153 | ||||
Retained earnings | 11,464 | 11,040 | ||||||
Treasury stock, at cost, 56.7 and 54.2 shares | (4,905 | ) | (4,489 | ) | ||||
Common stock held by employee benefits trust, at cost, 0.5 and 0.7 shares | (7 | ) | (8 | ) | ||||
Accumulated other comprehensive loss | (1,503 | ) | (1,821 | ) | ||||
Total Cummins Inc. shareholders’ equity | 7,259 | 6,875 | ||||||
Noncontrolling interests | 905 | 299 | ||||||
Total equity | $ | 8,164 | $ | 7,174 | ||||
Total liabilities and equity | $ | 18,075 | $ | 15,011 | ||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. |
Years ended December 31, | ||||||||
In millions | 2017 | 2016 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 2,277 | $ | 1,939 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital expenditures | (506 | ) | (531 | ) | ||||
Investments in internal use software | (81 | ) | (63 | ) | ||||
Proceeds from disposals of property, plant and equipment | 110 | 14 | ||||||
Investments in and advances to equity investees | (66 | ) | (41 | ) | ||||
Acquisitions of businesses, net of cash acquired | (662 | ) | (94 | ) | ||||
Investments in marketable securities—acquisitions | (194 | ) | (478 | ) | ||||
Investments in marketable securities—liquidations | 266 | 306 | ||||||
Proceeds from sale of equity investees | — | 60 | ||||||
Cash flows from derivatives not designated as hedges | 76 | (102 | ) | |||||
Other, net | 5 | 12 | ||||||
Net cash used in investing activities | (1,052 | ) | (917 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from borrowings | 6 | 111 | ||||||
Net borrowings of commercial paper | 86 | 212 | ||||||
Payments on borrowings and capital lease obligations | (60 | ) | (163 | ) | ||||
Net borrowings under short-term credit agreements | 12 | 19 | ||||||
Distributions to noncontrolling interests | (29 | ) | (65 | ) | ||||
Dividend payments on common stock | (701 | ) | (676 | ) | ||||
Repurchases of common stock | (451 | ) | (778 | ) | ||||
Acquisitions of noncontrolling interests | — | (98 | ) | |||||
Other, net | 63 | 25 | ||||||
Net cash used in financing activities | (1,074 | ) | (1,413 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 98 | (200 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 249 | (591 | ) | |||||
Cash and cash equivalents at beginning of year | 1,120 | 1,711 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 1,369 | $ | 1,120 | ||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. |
In millions | Engine | Distribution | Components (1) | Power Systems | Total Segment | Intersegment Eliminations (2) | Total | |||||||||||||||||||||||
Three months ended December 31, 2017 | ||||||||||||||||||||||||||||||
External sales | $ | 1,710 | $ | 1,928 | $ | 1,180 | $ | 658 | $ | 5,476 | $ | — | $ | 5,476 | ||||||||||||||||
Intersegment sales | 577 | 10 | 378 | 445 | 1,410 | (1,410 | ) | — | ||||||||||||||||||||||
Total sales | 2,287 | 1,938 | 1,558 | 1,103 | 6,886 | (1,410 | ) | 5,476 | ||||||||||||||||||||||
Depreciation and amortization (3) | 47 | 26 | 46 | 30 | 149 | — | 149 | |||||||||||||||||||||||
Research, development and engineering expenses | 79 | 5 | 70 | 53 | 207 | — | 207 | |||||||||||||||||||||||
Equity, royalty and interest income from investees (4) | 33 | 9 | — | 14 | 56 | — | 56 | |||||||||||||||||||||||
Interest income | 2 | 2 | 2 | 1 | 7 | — | 7 | |||||||||||||||||||||||
EBIT | 224 | 97 | 168 | 95 | 584 | 36 | 620 | |||||||||||||||||||||||
EBIT as a percentage of total sales | 9.8 | % | 5.0 | % | 10.8 | % | 8.6 | % | 8.5 | % | 11.3 | % | ||||||||||||||||||
Three months ended December 31, 2016 | ||||||||||||||||||||||||||||||
External sales | $ | 1,424 | $ | 1,664 | $ | 860 | $ | 555 | $ | 4,503 | $ | — | $ | 4,503 | ||||||||||||||||
Intersegment sales | 543 | 6 | 317 | 377 | 1,243 | (1,243 | ) | — | ||||||||||||||||||||||
Total sales | 1,967 | 1,670 | 1,177 | 932 | 5,746 | (1,243 | ) | 4,503 | ||||||||||||||||||||||
Depreciation and amortization (3) | 41 | 31 | 38 | 28 | 138 | — | 138 | |||||||||||||||||||||||
Research, development and engineering expenses | 60 | 3 | 47 | 48 | 158 | — | 158 | |||||||||||||||||||||||
Equity, royalty and interest income from investees | 28 | 14 | 12 | 13 | 67 | — | 67 | |||||||||||||||||||||||
Interest income | 2 | 1 | 1 | 1 | 5 | — | 5 | |||||||||||||||||||||||
EBIT | 194 | 122 | (5) | 140 | 68 | (6) | 524 | 2 | 526 | |||||||||||||||||||||
EBIT as a percentage of total sales | 9.9 | % | 7.3 | % | 11.9 | % | 7.3 | % | 9.1 | % | 11.7 | % | ||||||||||||||||||
(1 | ) | The 2017 disclosures include Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. | ||||||||||||||||||||||||||||
(2 | ) | Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended December 31, 2017 and 2016. | ||||||||||||||||||||||||||||
(3 | ) | Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense." | ||||||||||||||||||||||||||||
(4 | ) | U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million, $4 million and $12 million for the Engine, Distribution and Components segments, respectively. | ||||||||||||||||||||||||||||
(5 | ) | Distribution segment EBIT included a gain of $15 million on the fair value adjustment resulting from the acquisition of the controlling interest in a North American distributor in the fourth quarter of 2016. | ||||||||||||||||||||||||||||
(6 | ) | In the fourth quarter of 2016, we sold our remaining 49 percent interest in Cummins Olayan Energy for $61 million and recognized a gain of $17 million. |
In millions | Engine | Distribution | Components (1) | Power Systems | Total Segment | Intersegment Eliminations (2) | Total | |||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||
External sales | $ | 6,661 | $ | 7,029 | $ | 4,363 | $ | 2,375 | $ | 20,428 | $ | — | $ | 20,428 | ||||||||||||||||
Intersegment sales | 2,292 | 29 | 1,526 | 1,683 | 5,530 | (5,530 | ) | — | ||||||||||||||||||||||
Total sales | 8,953 | 7,058 | 5,889 | 4,058 | 25,958 | (5,530 | ) | 20,428 | ||||||||||||||||||||||
Depreciation and amortization (3) | 184 | 116 | 163 | 117 | 580 | — | 580 | |||||||||||||||||||||||
Research, development and engineering expenses | 279 | 19 | 240 | 214 | 752 | — | 752 | |||||||||||||||||||||||
Equity, royalty and interest income from investees (4) | 219 | 44 | 40 | 54 | 357 | — | 357 | |||||||||||||||||||||||
Interest income | 6 | 6 | 3 | 3 | 18 | — | 18 | |||||||||||||||||||||||
EBIT | 959 | 384 | 754 | 294 | 2,391 | 55 | 2,446 | |||||||||||||||||||||||
EBIT as a percentage of total sales | 10.7 | % | 5.4 | % | 12.8 | % | 7.2 | % | 9.2 | % | 12.0 | % | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||
External sales | $ | 5,774 | $ | 6,157 | $ | 3,514 | $ | 2,064 | $ | 17,509 | $ | — | $ | 17,509 | ||||||||||||||||
Intersegment sales | 2,030 | 24 | 1,322 | 1,453 | 4,829 | (4,829 | ) | — | ||||||||||||||||||||||
Total sales | 7,804 | 6,181 | 4,836 | 3,517 | 22,338 | (4,829 | ) | 17,509 | ||||||||||||||||||||||
Depreciation and amortization (3) | 163 | 116 | 133 | 115 | 527 | — | 527 | |||||||||||||||||||||||
Research, development and engineering expenses | 226 | 13 | 208 | 189 | 636 | — | 636 | |||||||||||||||||||||||
Equity, royalty and interest income from investees | 148 | 70 | 41 | 42 | 301 | — | 301 | |||||||||||||||||||||||
Loss contingency | 138 | — | — | — | 138 | — | 138 | |||||||||||||||||||||||
Interest income | 10 | 4 | 4 | 5 | 23 | — | 23 | |||||||||||||||||||||||
EBIT | 686 | 392 | (5) | 641 | 263 | (6) | 1,982 | 17 | 1,999 | |||||||||||||||||||||
EBIT as a percentage of total sales | 8.8 | % | 6.3 | % | 13.3 | % | 7.5 | % | 8.9 | % | 11.4 | % | ||||||||||||||||||
(1 | ) | The 2017 disclosures include Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. | ||||||||||||||||||||||||||||
(2 | ) | Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the years ended December 31, 2017 and 2016. | ||||||||||||||||||||||||||||
(3 | ) | Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense." The amortization of debt discount and deferred costs was $3 million for both years ended December 31, 2017 and December 31, 2016. | ||||||||||||||||||||||||||||
(4 | ) | U.S. tax legislation passed in December 2017 decreased our equity earnings at certain equity investees, negatively impacting our equity, royalty and interest income from investees by $23 million, $4 million and $12 million for the Engine, Distribution and Component segments, respectively. | ||||||||||||||||||||||||||||
(5 | ) | Distribution segment EBIT included a gain of $15 million on the fair value adjustment resulting from the acquisition of the controlling interests in a North American distributor in the fourth quarter of 2016. | ||||||||||||||||||||||||||||
(6 | ) | In the fourth quarter of 2016, we sold our remaining 49 percent interest in Cummins Olayan Energy for $61 million and recognized a gain of $17 million. |
Three months ended | Years ended | |||||||||||||||
In millions | December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Total EBIT | $ | 620 | $ | 526 | $ | 2,446 | $ | 1,999 | ||||||||
Less: Interest expense | 24 | 18 | 81 | 69 | ||||||||||||
Income before income taxes | $ | 596 | $ | 508 | $ | 2,365 | $ | 1,930 |
Three months ended | Years ended | |||||||||||||||
In millions | December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Distribution entities | ||||||||||||||||
Komatsu Cummins Chile, Ltda. | $ | 7 | $ | 8 | $ | 30 | $ | 34 | ||||||||
North American distributors | — | 3 | — | 21 | ||||||||||||
All other distributors | — | (2 | ) | (1 | ) | — | ||||||||||
Manufacturing entities | ||||||||||||||||
Dongfeng Cummins Engine Company, Ltd. | 17 | 14 | 73 | 46 | ||||||||||||
Beijing Foton Cummins Engine Co., Ltd. | 15 | (7 | ) | 94 | 52 | |||||||||||
Chongqing Cummins Engine Company, Ltd. | 11 | 10 | 41 | 38 | ||||||||||||
Dongfeng Cummins Emission Solutions Co., Ltd. | 3 | 4 | 13 | 9 | ||||||||||||
Shanghai Fleetguard Filter Co., Ltd. | 2 | 3 | 12 | 10 | ||||||||||||
Cummins Westport, Inc. | — | (1) | 6 | 9 | (1) | 11 | ||||||||||
All other manufacturers | (12 | ) | (1) | 16 | 37 | (1) | 39 | |||||||||
Cummins share of net income | 43 | 55 | 308 | 260 | ||||||||||||
Royalty and interest income | 13 | 12 | 49 | 41 | ||||||||||||
Equity, royalty and interest income from investees | $ | 56 | $ | 67 | $ | 357 | $ | 301 |
In millions | Impact of Tax Legislation | ||
Increase in income tax expense | $ | 781 | |
Decrease in equity, royalty and other income from investees | 39 | ||
Increase in income attributable to noncontrolling interests | (43 | ) | |
Net impact of Tax Legislation | $ | 777 |
Cummins Inc. and Subsidiaries | ||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||
Three months ended | ||||||||||||
December 31, 2017 | ||||||||||||
In millions, except per share amounts | As Reported Under GAAP | Excluding Tax Legislation Impact | Adjusted Excluding Tax Impact | |||||||||
NET SALES | $ | 5,476 | $ | — | $ | 5,476 | ||||||
Cost of sales | 4,102 | — | 4,102 | |||||||||
GROSS MARGIN | 1,374 | — | 1,374 | |||||||||
OPERATING EXPENSES AND INCOME | ||||||||||||
Selling, general and administrative expenses | 633 | — | 633 | |||||||||
Research, development and engineering expenses | 207 | — | 207 | |||||||||
Equity, royalty and interest income from investees | 56 | 39 | 95 | |||||||||
Loss contingency | 5 | — | 5 | |||||||||
Other operating income (expense), net | 10 | — | 10 | |||||||||
OPERATING INCOME | 595 | 39 | 634 | |||||||||
Interest income | 7 | — | 7 | |||||||||
Interest expense | 24 | — | 24 | |||||||||
Other income, net | 18 | — | 18 | |||||||||
INCOME BEFORE INCOME TAXES | 596 | 39 | 635 | |||||||||
Income tax expense | 905 | (781 | ) | 124 | ||||||||
CONSOLIDATED NET (LOSS) INCOME | (309 | ) | 820 | 511 | ||||||||
Less: Net (loss) income attributable to noncontrolling interests | (35 | ) | 43 | 8 | ||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO CUMMINS INC. | $ | (274 | ) | $ | 777 | $ | 503 | |||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. | ||||||||||||
Basic | $ | (1.66 | ) | $ | 4.70 | $ | 3.04 | |||||
Diluted | $ | (1.65 | ) | $ | 4.68 | $ | 3.03 | |||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||
Basic | 165.4 | — | 165.4 | |||||||||
Diluted | 166.2 | — | 166.2 | |||||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 1.08 | $ | — | $ | 1.08 | ||||||
Cummins Inc. and Subsidiaries | ||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||
Year ended | ||||||||||||
December 31, 2017 | ||||||||||||
In millions, except per share amounts | As Reported Under GAAP | Excluding Tax Legislation Impact | Adjusted Excluding Tax Impact | |||||||||
NET SALES | $ | 20,428 | $ | — | $ | 20,428 | ||||||
Cost of sales | 15,338 | — | 15,338 | |||||||||
GROSS MARGIN | 5,090 | — | 5,090 | |||||||||
OPERATING EXPENSES AND INCOME | ||||||||||||
Selling, general and administrative expenses | 2,390 | — | 2,390 | |||||||||
Research, development and engineering expenses | 752 | — | 752 | |||||||||
Equity, royalty and interest income from investees | 357 | 39 | 396 | |||||||||
Loss contingency | 5 | — | 5 | |||||||||
Other operating income (expense), net | 65 | — | 65 | |||||||||
OPERATING INCOME | 2,365 | 39 | 2,404 | |||||||||
Interest income | 18 | — | 18 | |||||||||
Interest expense | 81 | — | 81 | |||||||||
Other income, net | 63 | — | 63 | |||||||||
INCOME BEFORE INCOME TAXES | 2,365 | 39 | 2,404 | |||||||||
Income tax expense | 1,371 | (781 | ) | 590 | ||||||||
CONSOLIDATED NET INCOME | 994 | 820 | 1,814 | |||||||||
Less: Net (loss) income attributable to noncontrolling interests | (5 | ) | 43 | 38 | ||||||||
NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $ | 999 | $ | 777 | $ | 1,776 | ||||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. | ||||||||||||
Basic | $ | 5.99 | $ | 4.66 | $ | 10.65 | ||||||
Diluted | $ | 5.97 | $ | 4.65 | $ | 10.62 | ||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||
Basic | 166.6 | — | 166.6 | |||||||||
Diluted | 167.3 | — | 167.3 | |||||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 4.21 | $ | — | $ | 4.21 | ||||||
Three months ended | Years ended | |||||||||||||||
In millions | December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Net (loss) income attributable to Cummins Inc. | $ | (274 | ) | $ | 378 | $ | 999 | $ | 1,394 | |||||||
Net (loss) income attributable to Cummins Inc. as a percentage of net sales | (5.0 | )% | 8.4 | % | 4.9 | % | 8.0 | % | ||||||||
Add | ||||||||||||||||
Net (loss) income attributable to noncontrolling interests | (35 | ) | 18 | (5 | ) | 62 | ||||||||||
Consolidated net (loss) income | (309 | ) | 396 | 994 | 1,456 | |||||||||||
Add | ||||||||||||||||
Interest expense | 24 | 18 | 81 | 69 | ||||||||||||
Income tax expense | 905 | 112 | 1,371 | 474 | ||||||||||||
EBIT | 620 | 526 | 2,446 | 1,999 | ||||||||||||
EBIT as a percentage of net sales | 11.3 | % | 11.7 | % | 12.0 | % | 11.4 | % | ||||||||
Impact of tax legislation on equity investees | 39 | — | 39 | — | ||||||||||||
EBIT, excluding impact of tax legislation on equity investees | $ | 659 | $ | 526 | $ | 2,485 | $ | 1,999 | ||||||||
EBIT, excluding impact of tax legislation on equity investees, as a percentage of net sales | 12.0 | % | 11.7 | % | 12.2 | % | 11.4 | % |
Three months ended | Years ended | |||||||||||||||
In millions | December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Net (loss) income attributable to Cummins Inc. | $ | (274 | ) | $ | 378 | $ | 999 | $ | 1,394 | |||||||
Net (loss) income attributable to Cummins Inc. as a percentage of net sales | (5.0 | )% | 8.4 | % | 4.9 | % | 8.0 | % | ||||||||
Add | ||||||||||||||||
Net (loss) income attributable to noncontrolling interests | (35 | ) | 18 | (5 | ) | 62 | ||||||||||
Consolidated net (loss) income | (309 | ) | 396 | 994 | 1,456 | |||||||||||
Add | ||||||||||||||||
Interest expense | 24 | 18 | 81 | 69 | ||||||||||||
Income tax expense | 905 | 112 | 1,371 | 474 | ||||||||||||
EBIT | 620 | 526 | 2,446 | 1,999 | ||||||||||||
Add | ||||||||||||||||
Depreciation and amortization | 149 | 138 | 580 | 527 | ||||||||||||
EBITDA | 769 | 664 | 3,026 | 2,526 | ||||||||||||
EBITDA as a percentage of net sales | 14.0 | % | 14.7 | % | 14.8 | % | 14.4 | % | ||||||||
Impact of tax legislation on equity investees | 39 | — | 39 | — | ||||||||||||
EBITDA, excluding impact of tax legislation on equity investees | $ | 730 | $ | 664 | $ | 3,065 | $ | 2,526 | ||||||||
EBITDA, excluding tax legislation impact on equity investees, as a percentage of net sales | 13.3 | % | 14.7 | % | 15.0 | % | 14.4 | % |
2017 | ||||||||||||||||||||
In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
Heavy-duty truck | $ | 620 | $ | 714 | $ | 776 | $ | 730 | $ | 2,840 | ||||||||||
Medium-duty truck and bus | 544 | 701 | 625 | 643 | 2,513 | |||||||||||||||
Light-duty automotive | 423 | 429 | 452 | 423 | 1,727 | |||||||||||||||
Off-highway | 436 | 463 | 483 | 491 | 1,873 | |||||||||||||||
Total sales | $ | 2,023 | $ | 2,307 | $ | 2,336 | $ | 2,287 | $ | 8,953 | ||||||||||
2016 | ||||||||||||||||||||
In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
Heavy-duty truck | $ | 631 | $ | 622 | $ | 625 | $ | 565 | $ | 2,443 | ||||||||||
Medium-duty truck and bus | 549 | 600 | 517 | 606 | 2,272 | |||||||||||||||
Light-duty automotive | 433 | 394 | 345 | 409 | 1,581 | |||||||||||||||
Off-highway | 363 | 386 | 372 | 387 | 1,508 | |||||||||||||||
Total sales | $ | 1,976 | $ | 2,002 | $ | 1,859 | $ | 1,967 | $ | 7,804 |
2017 | |||||||||||||||
Units | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||
Heavy-duty | 19,200 | 24,100 | 28,100 | 24,500 | 95,900 | ||||||||||
Medium-duty | 60,300 | 71,600 | 68,500 | 67,700 | 268,100 | ||||||||||
Light-duty | 63,100 | 65,600 | 66,300 | 62,500 | 257,500 | ||||||||||
Total units | 142,600 | 161,300 | 162,900 | 154,700 | 621,500 | ||||||||||
2016 | |||||||||||||||
Units | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||
Heavy-duty | 19,700 | 20,700 | 20,100 | 18,500 | 79,000 | ||||||||||
Medium-duty | 55,400 | 62,300 | 53,400 | 58,000 | 229,100 | ||||||||||
Light-duty | 61,700 | 57,100 | 49,800 | 60,000 | 228,600 | ||||||||||
Total units | 136,800 | 140,100 | 123,300 | 136,500 | 536,700 |
2017 | ||||||||||||||||||||
In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
Parts | $ | 745 | $ | 759 | $ | 768 | $ | 768 | $ | 3,040 | ||||||||||
Service | 319 | 320 | 326 | 347 | 1,312 | |||||||||||||||
Power generation | 306 | 329 | 317 | 385 | 1,337 | |||||||||||||||
Engines | 275 | 314 | 342 | 438 | 1,369 | |||||||||||||||
Total sales | $ | 1,645 | $ | 1,722 | $ | 1,753 | $ | 1,938 | $ | 7,058 | ||||||||||
2016 | ||||||||||||||||||||
In millions | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||
Parts | $ | 648 | $ | 642 | $ | 643 | $ | 694 | $ | 2,627 | ||||||||||
Service | 299 | 297 | 299 | 320 | 1,215 | |||||||||||||||
Power generation | 275 | 326 | 291 | 347 | 1,239 | |||||||||||||||
Engines | 241 | 279 | 271 | 309 | 1,100 |